ADB pledges to continue supporting GMS countries’ growth

Jakarta (VNA) – The Asian Development Bank (ADB) will continue
to be a trusted partner of Greater Mekong Sub-region (GMS) countries in their efforts
for future growth, ADB President Takehiko
Nakao wrote in an article published by Indonesia’s Jakarta Globe newspaper.

In the article, entitled “Securing Future Prosperity of
the Greater Mekong Sub-region,” the ADB President underlined that GMS countries
have made stunning progress over the past quarter century.

The GMS Economic Cooperation Programme has contributed significantly to this
transformation, he wrote, noting that since it was established in 1992 as a
means to enhance economic relations and promote regional cooperation, its six
member states – Cambodia, China, Laos, Myanmar, Thailand and Vietnam – have
built a platform for economic cooperation that has mobilised almost 21 billion
USD for high-priority infrastructure projects.

Foreign direct
investment (FDI) into the sub-region has surged tenfold and trade between its
countries has climbed to over 414 billion USD from 5 billion USD.

The author pointed to challenges to GMS prosperity, including climate change
adaptation and mitigation, energy efficiency, food security and sustainable
urbanisation, along with new challenges such as growing inequalities, rising
levels of cross-border migration, and the potential impact on jobs of the
fourth industrial revolution.

However, he stressed that there are also emerging opportunities for the region,
including incorporating new technologies in various sectors such as education,
agriculture, health, and finance. GMS countries are situated at the crossroads
of South and Southeast Asia, and hence they can benefit from the increased momentum
for growth in South Asia.

GMS countries have identified a new pipeline of 227 projects worth about 66
billion USD under the GMS Regional Investment Framework 2018-2022, he noted,
adding that these projects will expand economic prosperity by developing
cross-border transportation and energy infrastructure.

According to Takehiko Nakao, the ADB, which has been the programme's
secretariat since its inception, expects to provide 7 billion USD over the next
five years for a range of projects supporting transportation, tourism, energy,
climate change mitigation and adaptation, agribusiness value chains and urban
development. This builds on more than 8 billion USD in financing provided by the
ADB so far under the programme.

The GMS will benefit from strengthened partnerships with other regional and
global cooperation platforms, leading to new opportunities for future
development. Partnerships with the private sector will also be increasingly
important, and it is gratifying to see them deepening through the GMS Business
Council, the Mekong Business Initiative, the e-Commerce Platform, GMS tourism
and agriculture forums, and the recent Finance Sector and Trade Finance
Conference, he asserted.

“I am optimistic that the sub-region will meet its challenges and capitalise on
emerging opportunities. By working together, GMS countries can deliver rapid,
sustainable and inclusive growth for another 25 years and beyond. The ADB will
continue to be an important and trusted partner in that endeavor,” concluded
Takehiko Nakao.-VNA